Summary
The applicant, a 39-year-old program manager with a master's degree, faced security concerns under Guideline F due to financial difficulties stemming from real estate investments between 2006 and 2013. He successfully mitigated these concerns by demonstrating that all debts were resolved and his financial situation was stable, leading to a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The $9,720 judgment for an unpaid real estate line of credit was paid and released in May 2013 (1.a). The $422 jewelry debt was paid in June 2016 (1.b). These three real estate investment loans, which were owed to Bank B, went into foreclosure and were resolved in 2008 and 2013 (1.c). This real estate investment loan owed to Mortgage Company L went into foreclosure in 2007 (1.d). This real estate investment loan owed to Bank C went into foreclosure in 2007 (1.e). This real estate investment loan owed to Bank W went into foreclosure. It was resolved in 2010 (1.f). The $209 owed to a credit service for a medical bill was paid in 2013 (1.g). The $65 debt was a utility bill owed for one of Applicant’s former rental properties. Applicant said that he paid it in July 2013 (1.h). The $204 debt for a credit card account was resolved with the creditor (1.i). The $793 medical debt owed to a hospital was fully paid in 2016 (1.j). The $135 medical debt owed to the same hospital as noted above was paid in 2016 (1.k).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: All debts alleged in the SOR were resolved or paid off; The applicant's financial situation is currently stable and under control; He demonstrated a good-faith effort to resolve overdue debts.
Why the Applicant Prevailed
- All debts alleged in the SOR were resolved or paid off.
- The applicant's financial situation is currently stable and under control.
- He demonstrated a good-faith effort to resolve overdue debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial problems were ongoing into 2016.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant bore some responsibility for his financial decisions.
- AG ¶ 20(c)appliedReceived Counseling or Indications of ResolutionThere are clear indications that the applicant's financial issues are under control.
- AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsThe applicant paid 5 of the 11 SOR allegations.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 6, 2015
- Answer filedDec 30, 2015
- Hearing heldJul 13, 2016
- Decision dateSep 13, 2016
Cite For
- Mitigation of Financial Issues Under Guideline F
- Good-faith Efforts to Resolve Debts
- Stability of Financial Situation as a Mitigating Factor